This is a good news for enterprises as the lending interest rate for US dollar is now less than half of that of the Vietnamese dong. Over the past month, this firm had to cut 80% of rice exports because it was unable to access US dollar loans from the bank, which doubled the cost of borrowing to buy rice. However, it has gained back the regular export capacity as dollar loans will be resumed in 2 days.
"Export firms are going through fierce competitions with foreign enterprises. High loan rates result in higher product prices when we export to foreign markets. The resumption of lending in foreign currency from June 1st is good news for enterprises", Do Ha Nam - Chairman of Board of Directors, Intimex Group - said.
According to experts, the resumption of dollar loans will benefit enterprises. It proves that the authority in charge of currency management has taken action to revive domestic production.
"The resumption of dollar loans is beneficial to enterprises. Vietnam’s economy depends greatly on foreign trade. The lack of appropriate means of payments would have been a huge challenge for exporters", economist Le Duy Binh said.
Economists have debated whether controlling the issuing of foreign currency loans is appropriate given Vietnam’s current economic circumstances and the issue will continue to be discussed. The resumption of dollar loans is however needed amid current economic difficulties.
